Centre Urban Real Estate is advancing plans to transform two Waikiki sites, including the long-derelict 1615 Ala Wai Blvd., into 72 affordable workforce housing units under city guidelines.
Martin M.Q. Nguyen, Centre Urban principal, presented the proposals Nov. 4 to the Waikiki Neighborhood Board, which voted unanimously in support. Both projects remain in the city permitting process.
Centre Urban is planning a 32-unit mid-rise at 2533 Kaneloa Road, acquired last year in a fee-simple deal, and a 40-unit mid-rise at 1615 Ala Wai Blvd., a city-owned property obtained through condemnation. The city will lease the Ala Wai site to Centre Urban for 75 years.
Nguyen said construction at 2533 Kaneloa Road could begin early next year, with completion in 10 to 12 months. Work at 1615 Ala Wai Blvd. is targeted to start in late 2026 and finish in 2027.
Originally from Oahu, Nguyen told the Honolulu Star-Advertiser that his return to Hawaii to develop affordable workforce housing is personal. He said the lack of housing for young professionals on Oahu was part of his motivation to move to the U.S. mainland three days after graduating from the University of Hawaii.
“I had an option between my childhood bedroom or splitting an old 1960s walk-up with roommates. It feels good to come home and be able to make an impact on the housing crisis,” he said. “We are trying to fill the missing middle.”
The projects are aimed at households earning 60% to 80% of area median income — currently $63,840 to $85,120 for individuals and $91,200 to $121,600 for a family of four. Rents are expected to be 25% below Waikiki market rates.
“The hope that anyone choosing to live in these two projects is that they would live in Waikiki already,” Nguyen said. “The ideal situation is someone who doesn’t need a car and they can either Biki (bikeshare) or walk to their work whether they work at the Hilton Hawaiian Village or (Moana) Surfrider or International Market Place or Ala Moana Center.”
Keith Vieira, principal of KV &Associates, Hospitality Consulting, said the conversion of apartment units in Waikiki to short-term rentals has reduced Waikiki’s workforce housing supply, making it increasingly difficult for young workers to find affordable rentals.
“The new union contracts at Waikiki hotels offer good pay, but there are a number of openings at every property,” Vieira said.
Jerry Gibson, president of the Hawai‘i Hotel Alliance, said Waikiki needs more workforce housing.
“You hear team members talking about the cost of living here. It isn’t easy for anyone,” he said.
Neighborhood critics
Waikiki Neighborhood Board Chairperson Bob Finley told the Star-Advertiser that the board backed the projects despite feedback from some residents who want senior or day care facilities instead.
Kathryn Henski, Waikiki Neighborhood Board member, supported the housing but raised concerns about limited parking and questioned how developers would ensure the units go to Waikiki workers.
Both Finley and Henski praised the city’s efforts to clean up the neighborhood and add workforce housing.
City Council Chair Tommy Waters, who represents Waikiki, initiated condemnation proceedings after the condition of the 1615 Ala Wai Blvd. property drew complaints.
Before initiating condemnation proceedings, the city spent about three years trying to acquire the property, which had been vacant for at least a couple of decades and had a history of complaints filed with the city Department of Planning and Permitting, and Honolulu Police Department.
When the site was finally demolished this summer, Mayor Rick Blangiardi said in a statement, “We have taken this site from decades of vacancy and blight to a point where we can now reimagine its future.”
Centre Urban was selected as the city’s development partner for 1615 Ala Wai Blvd. after a competitive process. Kevin Auger, director designate of the Department of Housing and Land Management, said the project offers a chance to “finally turn the page on a long-vacant and deteriorating property” and deliver “lasting value through quality, affordable housing.”
Source: The Garden Island